Gold bullish, but short-term momentum limited below 1200 handle

The precious metal struggled over the last couple trading sessions to add robust gains, although in the short-term momentum is bullish. At the time of writing, Gold spot is near 1,188.00 which is +6.98 gain, or +0.59%.

U.S. economic indicators picture a long-term positive outlook for the next 12 months. In addition, the prospect of new stimulus in the form of tax cuts and massive infrastructure spending makes more attractive, at least for now, US companies and other similar assets that shine as sure bets to traders and investors.

Gold Technical Levels

Jason Sen, director at DayTradeIdeas.com, shared his views on the metal, "Gold now very overbought in a bear trend as we retest of important resistance at 1180/82. Again, shorts need stops above the December high at 1187/88. An unexpected break higher this week however is a buy signal & initially targets resistance at 1199/1200 & again at 1204/05."

"Below 1180 is more negative & should help our shorts as we target minor support at 1176/75 before good support for today at 1171/70. A low for the day is possible here again but longs are too risky. A break lower meets probably the best support for this week at 1162/61. A bounce from here is likely on the first test this week, but longs need stops below 1156."

GOLD ongoing recovery can extend, but not much